Stadium financing prospects now far less daunting

West of Interstate 5 and south of Interstate 8, and near Mission Bay, Ocean Beach and Mission Beach, the sports arena site could be perfectly suited for a mini version of the successful Liberty Station multiuse project on a former Navy base one mile to the south in Point Loma.

“The sports arena site could be extraordinarily valuable,” one veteran local developer and political insider told me. “Colony Capital knows what it’s doing.”

A multiuse project would generate considerable revenue for the city.

Meanwhile, the Qualcomm site in Mission Valley is once again as attractive for potential development as it was in 2004, when the Chargers proposed building a stadium there while paying for the project by developing the area around the stadium with residences, retail stores and more. Such development also would help generate tax revenue for the city.

The Qualcomm scenario now has other attractive dimensions: the possibilities that part of the site might be used for new student dormitories and faculty housing for expansion-minded San Diego State University, just four miles to the east, and that a park could be built on the San Diego River on the parcel’s southern edge.

“There aren’t many parcels (like these two) anywhere in a growing city in America,” said Fabiani.

How might this all come together?

In recent years, the Legislature has passed and Gov. Jerry Brown has signed bills expediting regulatory approvals for two potential football stadium projects in Los Angeles County. Because of the similar circumstances — including the prospect of strong union support — the Chargers are optimistic about the prospects for a similar San Diego bill clearing the way for development at the Qualcomm and sports arena sites and at whatever site is ultimately selected for the stadium. The measure might be even more attractive to state lawmakers if it also included capital improvements for San Diego State housing at Qualcomm.

Such legislation is a must-have to realize the value of the sites. Once enacted, the Chargers and the city could be on their way to having $800 million or more available for the stadium project. Depending on the site and the cost of construction and related infrastructure, that could be enough to fund a stand-alone stadium project. The East Village stadium plan touted by former Mayor Jerry Sanders had an $800 million price tag.

Beyond the funds from the Chargers, the NFL and the sale of the Qualcomm and Midway city property, there are other possible sources of money. The list includes:

• The $520 million that’s now planned to be spent for the Convention Center expansion, coming from increased hotel taxes and funding from the city and the Unified Port District. The project faces sweeping legal challenges. The lack of anything resembling an actual construction blueprint or adequate environmental and traffic-impact reviews has not just project critics but city insiders down on the chances the expansion will come to pass. If it fails, the possibility of winning hoteliers’ approval to shift that funding and integrating the expansion with a stadium project is far more likely.